Oh wow- this is a bit of a shock, and perhaps not a great thing if you're a T-Mobile customer in the US who actually prefers T-Mobile to ATT. ATT let loose with a press release stating that they're buying T-Mobile US from its owner Deutsche Telekom in a cash and stock transaction.

AT&T will pay $39 billion: $25 million in cash and the rest in stock to DT, who will then own an 8% interest in AT&T Wireless. The deal is expected to take a year to complete and it will have to get government approval. We're wondering if Uncle Sam will say "yes" since this deal would mean that there would be only 1 major GSM provider in the US.

This isn't the greatest thing for consumers. Competition drives down prices, but there will be no more serious GSM competition. T-Mobile's creative and more affordable plans would likely go away.

It's unlikely that AT&T would choose to nearly double the number of phones they offer (historically telco mergers don't broaden device portfolios). That means fewer phones to choose from.

T-Mobile's super customer service? Gone once the merger is complete.

The upside is that the merged company would have lots more wireless spectrum and that means AT&T can improve service: from fewer dropped calls to having enough spectrum to really roll out LTE 4G in a big way. They'd also inherit T-Mobile's much better HSPA+ network as a good interim service during the transition to AT&T. The bad news is that AT&T phones would use up to 4 bands for US service alone, and that can present challenges to device makers. Assuming that AT&T uses T-Mobile's AWS band (1700MHz) and 2100MHz for LTE, it also means a weaker LTE signal indoors compared to Verizon's 700MHz LTE (the higher on the spectrum, the weaker the building penetration).

No, it doesn't mean that. If Google decides to make a Nexus S with AT&T 3G then it will happen, and it has nothing to do with the proposed buy-out. BTW, if approved, AT&T states it will take about a year to finalize the purchase, and by then I'm sure something hotter than the Nexus S will be out .

Wow! I just heard this news on another site, and I cross-referenced it with two places before I was convinced it wasn't a hoax.

I never know how to "calculate karma" when two companies merge. Frankly, I have an extremely negative opinion of T-Mobile, and while I'm not in love with AT&T either, they actually are my current carrier. So what do you get when you combine "not great" with "thoroughly evil"?

I'm thinking maybe I will just choose between AT&T and Verizon based on which one can get me an iPhone 5 faster and cheaper (obviously this is still a few months down the road at least).

Jacob, given Apple's control over pricing, I'd expect the iPhone to remain priced the same on all US carriers that offer it. Probably the least popular carrier will be the place you can get a new model fastest .

Quote:Jacob, given Apple's control over pricing, I'd expect the iPhone to remain priced the same on all US carriers that offer it. Probably the least popular carrier will be the place you can get a new model fastest .

No I know, but my AT&T upgrade eligibility doesn't arrive until September, so if the iPhone 5 comes out in June or July, then it would actually be cheaper for me to pay AT&T the ETF and get the fully subsidized price from Verizon, than to pay the "early upgrade" price to AT&T.

If you are a T-Mobile customers, T-Mobile has this brief Q&A that explains what will happen to its customers in short term under this merger:

An agreement was announced under which AT&T will acquire T-Mobile USA. The agreement is the first step in a process that, including regulatory approvals, is expected to be completed in approximately 12 months. Until then, we remain a separate company and continue to operate independently.

We know our customers, business partners and others may have many questions.

Here is some more information:

Will my service change?

There is no change in your service and we remain committed to ensuring you have the best experience possible experience using your T-Mobile USA products and services.

Will I now be billed by AT&T?

No, your billing remains exactly the same. T-Mobile USA continues to operate as an independent company. As always, you would receive advance notice to any changes to your services.

Why is T-Mobile USA doing this?

Bringing together these two world-class businesses will create significant benefits for customers. The merger will ensure the deployment of a robust 4G LTE network to 95% of the U.S. population, something neither company would achieve on its own. Also, because of our compatible networks and spectrum, the customers of T-Mobile USA and AT&T will experience improved voice and data service almost immediately after the networks are integrated.

Will T-Mobile USA?s quality be reduced?

No. In fact, the combination of AT&T and T-Mobile USA will offer an even stronger service to customers. Until the acquisition is closed, we will work hard to maintain our position as the value leader with America?s largest 4G network.

If the acquisition closes, will I still be able to use my T-Mobile USA phone?

Yes. Your T-Mobile USA device will operate the same in the future as it does today.

Should I wait to sign-up with T-Mobile USA or upgrade my phone?

No, T-Mobile USA offers the latest wireless devices that are affordable on America?s Largest 4G Network and the combination of AT&T and T-Mobile USA will mean even stronger service for our customers. Now is a great time to be a T-Mobile customer.

Is T-Mobile USA getting the iPhone?

T-Mobile USA remains an independent company. The acquisition is expected to be completed in approximately 12 months. We do not offer the iPhone. We offer cutting edge devices like the Samsung Galaxy S 4G and coming soon our new Sidekick 4G.

Will my rate plan change because of the acquisition?

We will honor all contracted plans that are entered into before the change of ownership.